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Friday, Aug. 19, 2011 RSSSEND TO A FRIENDPRINT
Inside This Issue
VW Sees No Slowdown in Demand
U.S. Auto Sales Estimates Cut as Confidence Slows Rebound
Akerson Aims for GM to Stand Out from the Crowd
Automaker Stocks Take a Hit
Huntington's Auto Finance Business Donates $100,000 to Japan Red Cross
Click here for NADA's online newsroom at NADAFrontPage.com. .
Top 5 Stories
VW Sees No Slowdown in Demand

Volkswagen AG's top labor representative and deputy supervisory board chairman Bernd Osterloh says demand for the company's cars is holding up despite signs of slowing growth in Europe and the U.S., and the company has had to introduce extra shifts in its plants to produce enough vehicles. "There is no sign that demand is slowing," Mr. Osterloh told reporters late Wednesday. He said the company is struggling to keep up with strong demand and its order intake is enough to keep the company in full production for the rest of this year. Volkswagen is aiming to sell a record eight million cars and trucks in 2011, according to comments made by Chief Executive Martin Winterkorn last month.
Source: The Wall Street Journal

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U.S. Auto Sales Estimates Cut as Confidence Slows Rebound

Analysts are reducing estimates for U.S. automobile sales for 2011 and 2012, citing weak consumer confidence that has slowed the pace of recovery since May. J.D. Power & Associates lowered its estimate for U.S. auto sales in 2011 by 300,000 light vehicles to 12.6 million, the Westlake Village, California-based researcher said [Thursday] in a statement. The reduction by J.D. Power follows analysts at IHS Automotive in cutting expectations below the sales forecasts given by General Motors Co. and Ford Motor Co., the largest U.S. automakers. “The thought of a second-half recovery is just not in the cards,” Jeff Schuster, J.D. Power’s executive director of global forecasting, said [Thursday] in a phone interview.
Source: Bloomberg

Editor's note: “Over the past 10 days, global stock markets have declined dramatically, which has rattled consumer confidence and has car shoppers thinking twice about purchasing new automobiles,” says NADA Chief Economist Paul Taylor. “When consumers discover that the economy is still growing in the U.S. and Europe, although slowly, consumer confidence will improve.” As a result of the current economic conditions, several analysts have reduced their sales forecasts between the current year-to-date rate of 12.5 million new cars and light trucks and NADA’s forecast of 12.9 million, Taylor added. Many manufacturers still predict light-vehicle sales could be as high as 13 million this year, he said. Taylor expects new-vehicle inventory to return to reasonable levels in September, which will provide car shoppers with more choices of cars and trucks. “Auto loan rates for new cars will remain attractive this fall as a result of meager economic growth,” he said. “Depending on what happens on Wall Street, luxury car sales will either increase or decrease in the coming months,” Taylor added. “Consumers on Main Street will still need reliable cars to drive to work, and with the average age of cars and light trucks at 10.6 years old, manufacturer incentives increasing this fall and more inventory, new-car sales should increase in the last four months of the year.”

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Akerson Aims for GM to Stand Out from the Crowd

General Motors Co. CEO Dan Akerson said he wants to keep competitors guessing. That applies not only to new cars coming to market — like the electric Cadillac confirmed Wednesday — but also to the automaker's showroom discounts and other market moves. Japanese competitors hurt by the earthquake this spring will start to ramp up production in the third and fourth quarter and are expected to offer hefty vehicle discounts to lure buyers back into their dealerships. "We'll see what the market does and react," Akerson said, declining to say whether GM will follow suit in offering incentives. "Sometimes we'll be a counter puncher. Sometimes we'll be more aggressive."
Source: The Detroit News

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Automaker Stocks Take a Hit

Auto stocks fell sharply Thursday amid a broader market sell-off and growing concerns about weakening auto sales in the second half of the year. After hitting an all-time low of $23.30, General Motors Co. stock recovered a bit to close at $23.60, down $1.33 or 5.3 percent. Ford Motor Co. decreased 6.4 percent to $10.40, a drop of 71 cents. But Barclays Capital analyst Brian Johnson is still bullish on many auto stocks. "Even with sales stalled and an uncertain macro environment, auto stocks look cheap after their recent pullback," Johnson said.
Source: The Detroit News

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Huntington's Auto Finance Business Donates $100,000 to Japan Red Cross

Huntington’s auto finance business has donated $100,000 to the Japan Red Cross Society to support relief efforts for those affected by the recent earthquake and tsunami in Japan. At the beginning of May 2011, Huntington announced that it would make a donation for every automobile loan booked that month through its auto dealership partners — totaling as much as $100,000 — to Red Cross relief efforts in Japan. Donations were made in the names of the dealerships that choose to participate in the program.
Source: Japan Today 

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More articles

Aug. 18, 2011 - Car Dealers Fear Economy Could Scare Off Buyers

Aug. 17, 2011 - Automakers Rebound in July to Lift Factory Output

Aug. 16, 2011 - GM, Toyota Brands Top Satisfaction Index

Aug. 15, 2011 - Low Rates May Do Little to Entice Nervous Consumers

Aug. 12, 2011 - Obama Claims Connection Between Fuel Standards, Jobs, But Reality is Complicated

 
Quotable
"Sometimes we'll be a counter puncher. Sometimes we'll be more aggressive."

    -- Dan Akerson, General Motors Co. CEO, declining to say whether GM will follow Japanese competitors hurt by the earthquake this spring in offering incentives in the third and fourth quarter, The Detroit News, Aug. 18

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